He said: "Our 130,000 colleagues have done an outstanding job serving our customers great value food this Christmas and I would like to thank them for their dedication and hard work.

"In a difficult market, our sales performance was lower than anticipated, but we have a strong business and significant opportunities to advance our strategy, as we accelerate our multi-channel offer," he added.

The Bradford-based company also admitted it has not done enough to advertise its promotions and communicate its points of difference.

Last week, the company announced a brand endorsement and sponsorship deal with Geordie duo Ant (Taiwan OTC: 3646.TWO - news) & Dec to promote the chain's fresh food credentials.

The TV stars will front Morrisons' 2013 advertising campaign, and the supermarket will sponsor their shows Britain's Got Talent and Ant & Dec's Saturday Night Takeaway as part of the deal with broadcaster ITV (LSE: ITV.L - news) , FreemantleMedia Enterprises, Syco and James Grant management.